Observo’s AI-native platform slashes security and observability costs while enabling enterprises to scale for the AI era

Observo AI, an AI-native data pipeline company solving data sprawl and exponentially rising costs in observability and security, today announced it has raised $15 million in a seed funding round led by Felicis and Lightspeed Venture Partners. By combining advanced machine learning with agentic AI that can make decisions, learn, and dynamically adapt to changing data environments, Observo AI optimizes data pipelines to help enterprises process the explosion of AI-generated data more efficiently, securely, and cost-effectively. This enables enterprises to reduce data processing costs by over 50% while improving detection accuracy and speeding up incident resolution by more than 40%.

The funding comes on the back of strong interest with enterprises like Bill, Informatica, and Harbor Freight Tools adopting the platform to process petabytes of data every day. With momentum accelerating, Observo AI has achieved a staggering 600% revenue growth quarter-over-quarter since launching just nine months ago.

As enterprises rapidly adopt AI across their operations, data volumes have surged by over 100x compared to pre-AI workloads, driving observability and security costs to unsustainable levels. Legacy observability and security tools—built for a pre-AI world—struggle to handle this explosive growth, leading to false positives, data sprawl, and missed threats. This cascading inefficiency has left enterprises facing both skyrocketing operational costs and increased vulnerability, with a 2024 KPMG study found that nearly 50% of enterprises suffered security breaches, with poor data quality and false alerts cited as major contributors.

Founders Gurjeet Arora and Ricky Arora learned these challenges firsthand while at Rubrik. They came up with the idea for Observo AI when they applied their deep expertise in AI and security to solve the rapidly growing data problem. Traditional solutions can’t keep up with AI data. “Observo uses LLMs and Agentic AI to revolutionize observability and security,” said Gurjeet Arora, co-founder and CEO. “Our platform automates routine tasks, highlights key insights, and lets teams focus on preventing breaches and ensuring reliability.”

The adoption of AI has introduced a unique paradox. While AI agents drive unprecedented innovation, they simultaneously produce vast quantities of observability and operational data that exceed the capacity of traditional tools to manage effectively. Observo AI tackles this challenge with an AI-first architecture, fundamentally transforming how security and observability data are ingested, processed, analyzed, and prioritized.

At its core, Observo AI’s agentic platform continuously evolves its understanding of data patterns, automatically optimizing data pipelines in real-time as threats and anomalies emerge. By leveraging ML and LLMs, Observo AI filters through terabytes of noisy, unstructured data, extracting only the most critical signals for incident detection and response. The platform’s autonomous capabilities enable it to anticipate potential data processing bottlenecks, proactively adjust filtering rules, and eliminate redundant data streams without human intervention.

“Every new AI agent, application, and model generates exponentially more data, and the result is chaos for DevOps and security teams,” said Jake Storm, General Partner at Felicis. “Observo AI’s platform applies ML and LLM-driven automation to cut through the noise and deliver actionable insights—precisely the kind of innovation needed to secure the AI-powered enterprise.”

Guru Chahal, Partner at Lightspeed Venture Partners, added, “Observo AI’s use of Agentic AI with streaming observability creates a powerful system that constantly learns and improves, making data pipelines efficient and intelligent. This is game-changing technology for enterprises grappling with the data challenges of observability and security infra.”

“Before Observo AI, teams spent hours sorting through alerts and noisy data, which was neither scalable nor effective,” said Rinki Sethi, CISO at Bill. “Observo AI automates the data cleanup and highlights the insights that matter, enabling security teams to focus on threat detection and proactive security hunting.”

Experience the power of Observo AI with a free sandbox trial, where you’ll get hands-on access to our industry-leading AI platform. Your personal sandbox comes complete with pre-configured demo datasets, ready-to-use AI pipelines, and interactive tutorials with step-by-step implementation guides. See firsthand how Observo AI can streamline your workflows and unlock actionable insights from your business data. Visit www.observo.ai/sandbox to begin your transformation today.

Source: BUSINESS WIRE